President Recep Tayyip Erdoğan has criticized the global financial system as unsustainable and prone to recurring crises, arguing that a new economic model centered on justice, ethics, production and equitable wealth distribution is needed to ensure long-term stability.
“Financial crises cannot be prevented without transitioning to an economic and financial paradigm that places justice, morality, production and fair sharing at its core,” Erdoğan said on June 5 at an event in Istanbul focused on participation finance and Islamic economics.
The president pointed to a recent report by the Institute of International Finance showing global debt reached $350 trillion in the first quarter of 2026, calling it a troubling indicator for the future of the world economy.
“You cannot treat an illness requiring surgery with a bandage,” Erdoğan said, arguing that the debt and interest-based financial system failed to address the root causes of the 2008 global financial crisis and instead relied on temporary measures.
Erdoğan also linked economic challenges to ongoing conflicts across the Middle East, saying instability in the region was worsening due to wars, political crises and uncertainty. He cited the continuing conflict in Gaza, the West Bank and East Jerusalem, Israeli military operations in Lebanon and tensions involving Iran that have affected shipping through the Strait of Hormuz.
“The climate of trust and stability in our region is being increasingly damaged by wars, crises, fraternal conflicts and uncertainty,” he said.
Reiterating his long-standing call for reform of international institutions, Erdoğan said Türkiye’s slogan that “the world is bigger than five” applies not only to global political governance but also to economic relations shaped by inequality and exploitation.
He said the Islamic world should intensify criticism of the current financial order while working to implement concrete alternatives based on the principles of Islamic economics.
“Where there is interest, there is no abundance,” he said.
The president promoted participation finance — often referred to as Islamic finance — as a model based on risk-sharing, sustainability, social welfare and ethical principles. He said the system offers a fairer and more secure alternative not only for Muslim societies but for the global economy as a whole.
“Participation finance is a more just and secure model not only for Muslims but for the entire world,” Erdoğan said.
He said Türkiye considers participation finance a strategic component of its economic development and financial stability goals. He noted that participation finance and financial technology are the two main pillars of the country’s vision for the Istanbul Finance Center.
The president said the government is also working to strengthen Türkiye’s position as a hub where investment, production and financial services converge.
